(11)RESTRUCTURING CHARGES, INTEGRATION CHARGES AND IMPAIRMENT LOSSES

Restructuring Charges

During the years ended December 31, 2017, 2016 and 2015, the Company continued restructuring activities primarily associated with reductions in the Company’s capacity, workforce and related management in all of its segments to better align the capacity and workforce with current business needs.

During 2017, several restructuring activities were completed related to the purchase of Connextions (see Note 2) including the closure of two delivery centers that came with the acquisition. During 2017, a net $0.4 million severance accrual was recorded in relation to these closures. In conjunction with closing these two delivery centers, a $0.6 million termination fee and a $1.4 million net lease liability and applicable expenses were recorded as of December 31, 2017. These net charges were included in the Consolidated Statements of Comprehensive Income (Loss) during the year ended December 31, 2017.

A summary of the expenses recorded for restructuring and included in Restructuring and integration charges, net in the accompanying Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2017, 2016 and 2015, respectively, is as follows (in thousands):


	Year Ended December 31,
	2017		2016		2015
Reduction in force
Customer Management Services	$	1,012	$	2,837	$	1,482
Customer Growth Services		—		147		22
Customer Technology Services		94		324		13
Customer Strategy Services		55		92		297
Total	$	1,161	$	3,400	$	1,814


	Year Ended December 31,
	2017		2016		2015
Facility exit and other charges
Customer Management Services	$	2,050	$	959	$	—
Customer Growth Services		—		—		—
Customer Technology Services		84		33		—
Customer Strategy Services		85		—		—
Total	$	2,219	$	992	$	—

A rollforward of the activity in the Company’s restructuring accruals for the years ended December 31, 2017 and 2016, respectively, is as follows (in thousands):


	Reduction		Facility Exit and
	in Force		Other Charges		Total

Balance as of December 31, 2015	$	806	$	—	$	806
Expense		3,728		992		4,720
Payments		(2,646)		(894)		(3,540)
Changes due to foreign currency		(92)		—		(92)
Changes in estimates		(328)		—		(328)
Balance as of December 31, 2016		1,468		98		1,566
Expense		1,316		2,219		3,535
Payments		(1,892)		(908)		(2,800)
Changes due to foreign currency		(43)		—		(43)
Changes in estimates		(155)		—		(155)
Balance as of December 31, 2017	$	694	$	1,409	$	2,103

The remaining restructuring accruals are expected to be paid or extinguished during 2018 and are all classified as current liabilities within Other accrued expenses in the Consolidated Balance Sheets.

Integration Charges

During the third and fourth quarters of 2017, as a result of the Connextions acquisition, certain integration activities were completed and $5.6 million and $3.9 million of additional expenses were incurred and paid, respectively. These integration activities included the hiring, training and licensing of a group of employees at new delivery centers as one of the acquired centers was closed during the third quarter of 2017 and one of the acquired centers was closed during the fourth quarter of 2017. In connection with these center closures, leasehold improvements of $3.5 million were written off as a related integration expense. The Company has also incurred significant expenses related to the integration of the IT systems and has paid duplicative software costs and facilities expenses for several areas during the transition period.

Impairment Losses

During each of the periods presented, the Company evaluated the annual recoverability of its leasehold improvement assets at certain customer engagement centers. An asset is considered to be impaired when the anticipated undiscounted future cash flows of its asset group are estimated to be less than the asset group’s carrying value. The amount of impairment recognized is the difference between the carrying value of the asset group and its fair value. To determine fair value, the Company used Level 3 inputs in its discounted cash flows analysis. Assumptions included the amount and timing of estimated future cash flows and assumed discount rates. During 2017, 2016 and 2015, the Company recognized impairment losses related to leasehold improvement assets of zero, zero, and $0.4 million, respectively, in its Customer Management Services segment.